2008 Market Recap for Watters Crossing

Dear Watters Crossing Neighbor:

Happy New Year to you and yours!  We were blessed to have all of our children here for the Holidays (including our grandson!) and thoroughly enjoyed the hubbub and confusion of a full house.  Now it’s back to just Terri and me-we’re enjoying the quiet, but missing the kids.  I hope your Holidays were joyful and the New Year finds you in good health and looking forward to the new adventures that life holds in store.  Speaking of adventures, the Fourth Quarter was certainly that for home sales in Watters Crossing, as shown in the chart below.

While the DOM (Days On the Market) improved throughout the year, the 4^th Quarter ASF (Average Square Foot) hit a low we haven’t seen since 2003, and only four homes were sold.  In a nutshell-it wasn’t pretty.

But the picture isn’t all dark, by any means.  Interest rates are currently at a level not seen since the early 1970’s-I was quoted a rate of 4.75% today for 30 year conforming money.  That coupled with the decline in home prices in recent months makes homes much more affordable for more buyers in the market.  The only ingredient that’s missing is confidence.  To feel optimistic about the future against a backdrop of incessant negative economic news is not easy.  Most people, me included, have seen the value of their investments decline over the past year, and layoffs in a number of industries are on the rise.

Of course not everyone’s job is in jeopardy.  I would go so far as to say that the vast majority of the folks living in Watters Crossing aren’t at risk of losing their jobs.

So if your current home isn’t meeting your needs, and your job is secure, it may be an excellent time to move.  It will probably take a while to sell your house, and it won’t fetch the price that it would have a year ago.  But the home you’re buying won’t fetch that year-ago-price either, and if today’s interest rates hold, the affordability of your purchase is improved even more.  To paraphrase the investment guru Warren Buffet:  “Be fearful when the market is greedy and greedy when the market is fearful.”

One final thought.  They don’t hand out awards for paying more than your fair share of taxes, and chances are pretty good that when the proposed property tax assessments come out this spring, your friends down at the tax office will assess your home above market value.  When you get your proposed assessment, feel free to give me a call if you believe the value is too high and I’ll be happy to check for comps.  In the meantime, if you have any real estate questions or needs, call me at 972-390-2664.  I’d love to visit with you.

Best Regards,

Will Richardson

RE/MAX Town & Country